NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2500
SPONSOR: Davila TITLE OF BILL:
An act to amend the social services law, in relation to resource
exemptions for applicants for public assistance programs; and to amend
part B of chapter 436 of the laws of 1997, constituting the welfare
reform act of 1997, in relation to the effectiveness thereof
PURPOSE OR GENERAL IDEA OF BILL:
The bill would amend the income and resources exemptions provisions. of
§ 131-n of the Social Services Law (SSL) to ensure that applicants do
not have to divest themselves of certain resources to qualify for public
assistance.
SUMMARY OF SPECIFIC PROVISIONS:
Section one of the bill would amend SSL § 131-n.
Section two of the bill would provide for an April 1 next succeeding the
date on which it shall have become law.
JUSTIFICATION:
As a critical component of improving the economic well-being of low-in-
come families, the Office of Temporary and Disability Assistance has had
a longstanding policy that households in receipt of public assistance
should have certain resources exempt from consideration when determining
eligibility for public assistance. This bill would update and expand
the resources that an applicant of public assistance may possess without
affecting eligibility for assistance. The resources covered by the
exemption include savings accounts; the home that is the usual residence
of the household; one automobile per driver in the household; one burial
plot per household member; bona fide funeral agreements; retirement
accounts, including but not limited to Individual Retirement Accounts,
401(k)s, 403(b)s, and Keogh plans; and (k) all 529 college savings plan,
and other resources.
The resource exemptions amended in this bill are reflect updates that
consider inflation as well as the understanding that when households are
able to have certain resources exempt from consideration when applying
for public assistance, the resources are often an essential component of
getting off public assistance and achieving self-sufficiency,
PRIOR LEGISLATIVE HISTORY:
2024:A5689
2022: A. 7672
2021: A.2475;
2019-2020: A.4330A;
2018-2019: A.4330;
2017-2018: A,245;
2015-2016:
A.10312
FISCAL IMPLICATIONS:
Undetermined.
EFFECTIVE DATE:
April 1 next succeeding.the date on which it shall have become law.
STATE OF NEW YORK
________________________________________________________________________
2500
2025-2026 Regular Sessions
IN ASSEMBLY
January 17, 2025
___________
Introduced by M. of A. DAVILA, ROSENTHAL, HEVESI, GONZALEZ-ROJAS,
CUNNINGHAM -- read once and referred to the Committee on Social
Services
AN ACT to amend the social services law, in relation to resource
exemptions for applicants for public assistance programs; and to amend
part B of chapter 436 of the laws of 1997, constituting the welfare
reform act of 1997, in relation to the effectiveness thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 131-n of the social services law, as amended by
2 section 16 of part B of chapter 436 of the laws of 1997, subdivision 1
3 as amended by section 5 of part U of chapter 56 of the laws of 2022 and
4 subdivision 3 as amended by chapter 207 of the laws of 2001, is amended
5 to read as follows:
6 § 131-n. Exemption of income and resources. 1. The resources identi-
7 fied in subdivision two of this section shall be exempt and disregarded
8 at application in calculating the amount of benefits of any applicant
9 for any public assistance program. At recertification, resources deline-
10 ated in subdivision two of this section shall not be taken into consid-
11 eration when determining eligibility or calculating the amount of bene-
12 fits of any recipient for any public assistance program.
13 2. The following resources shall be exempt and disregarded in calcu-
14 lating the amount of benefits of any [household under] applicant for any
15 public assistance program: (a) cash and liquid or nonliquid resources up
16 to [two] ten thousand [five hundred] dollars [for applicants, three
17 thousand seven hundred fifty dollars for applicants in households in
18 which any member is sixty years of age or older or is disabled or ten
19 thousand dollars for recipients], (b) an amount up to [four thousand six
20 hundred] seven thousand fifty dollars in a separate bank account estab-
21 lished by an individual while currently in receipt of assistance for the
22 sole purpose of enabling the individual to purchase a first or replace-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00847-01-5
A. 2500 2
1 ment vehicle for the recipient to seek, obtain or maintain employment,
2 so long as the funds are not used for any other purpose, (c) an amount
3 [up to one thousand four] equal to the greater of five thousand one
4 hundred sixty-five dollars or the maximum tuition assistance program
5 award available for the current academic year in a separate bank account
6 established by an individual while currently in receipt of assistance
7 for the purpose of paying tuition at a two-year or four-year accredited
8 post-secondary educational institution, so long as the funds are not
9 used for any other purpose, (d) the home which is the usual residence of
10 the household, (e) one automobile, up to ten thousand dollars fair
11 market value, through March thirty-first, two thousand seventeen; one
12 automobile, up to eleven thousand dollars fair market value, from April
13 first, two thousand seventeen through March thirty-first, two thousand
14 eighteen; and one automobile, up to twelve thousand dollars fair market
15 value, beginning April first, two thousand eighteen and thereafter, or
16 such other higher dollar value as the local social services district may
17 elect to adopt, (f) one burial plot per household member as defined in
18 department regulations, (g) bona fide funeral agreements [up to a total
19 of one thousand five hundred dollars in equity value] per household
20 member, (h) funds in an individual development account established in
21 accordance with subdivision five of section three hundred fifty-eight of
22 this [chapter] article and section four hundred three of the social
23 security act, (i) for a period of six months, real property which the
24 household is making a good faith effort to sell, in accordance with
25 department regulations and tangible personal property necessary for
26 business or for employment purposes in accordance with department regu-
27 lations, [and] (j) funds in a qualified tuition program that satisfies
28 the requirement of section 529 of the Internal Revenue Code of 1986, as
29 amended, [and] (k) funds in a New York achieving a better life experi-
30 ence savings account established in accordance with article eighty-four
31 of the mental hygiene law, (l) retirement accounts, including but not
32 limited to individual retirement accounts, 401(k)'s, 403(b)'s, and Keogh
33 plans, and (m) all 529 college savings plans.
34 If federal law or regulations require the exemption or disregard of
35 additional income and resources in determining need for family assist-
36 ance, or medical assistance not exempted or disregarded pursuant to any
37 other provision of this chapter, the department may, by regulations
38 subject to the approval of the director of the budget, require social
39 services officials to exempt or disregard such income and resources.
40 Refunds resulting from earned income tax credits shall be disregarded in
41 public assistance programs. Court ordered child support which is paid
42 or withheld from income shall not be considered available income.
43 [2.] 3. If and to the extent permitted by federal law and regulations,
44 amounts received under section 105 of Public Law 100-383 as reparation
45 payments for internment of Japanese-Americans and payments made to indi-
46 viduals because of their status as victims of Nazi persecution as
47 defined in P.L. 103-286 shall be exempt from consideration as income or
48 resources for purposes of determining eligibility for and the amount of
49 benefits under any program provided under the authority of this chapter
50 and under title XX of the Social Security Act.
51 [3.] 4. Ownership of all other personal property not exempt in subdi-
52 visions two and three of this section, shall be evaluated based upon its
53 equity value.
54 5. The department is authorized to establish regulations defining
55 income and resources, consistent with this section. [The department is
56 further authorized to promulgate regulations it deems necessary to
A. 2500 3
1 prevent the improper establishment and use of accounts for purchase of
2 first or replacement vehicles.]
3 § 2. Subdivision (c) of section 153 of part B of chapter 436 of the
4 laws of 1997, constituting the welfare reform act of 1997, as amended by
5 chapter 195 of the laws of 2023, is amended to read as follows:
6 (c) Section sixteen of this act shall take effect November 1, 1997
7 [and expire and be deemed repealed August 22, 2025];
8 § 3. This act shall take effect immediately; provided, however, that
9 section one of this act shall take effect on the first of April next
10 succeeding the date on which it shall have become a law.
